Gold World News Flash |
- MAX KEISER'S CALL: CRASH JP MORGAN! BUY SILVER!
- GoldSeek.com Radio Gold Nugget: Kevin Kerr & Chris Waltzek
- Global Panics Just Not What They Used to Be
- Robust Long Term Demand Fundamentals for Precious Metals
- A MUST READ! "Bond Mkt Implosion & Gold Tactics": Stewart Thomson
- Gold Seeker Closing Report: Gold and Silver Fall Over 2%
- Does QE really stimulate economic activity?
- The Suck of the Irish
- James Turk - $400 Silver by 2013 to 2015
- $53,957 in Circulation for Every Ounce of Gold
- GET HER GOLD JEWELRY FOR CHRISTMAS
- Gene Arensberg's Got Gold Report for Nov. 14 posted in the clear
- Gene Arensberg's Got Gold Report for Nov. 14 posted in the clear
- Gold Analysis and Strategy 13th of November 2010
- The Lion and the Crocodile - November 16, 2010
- Stocks Spanked, QE2 Backfiring
- The Best Gold Storage Ideas You've Never Considered
- Keiser Report No. 95: Markets! Finance! Silver!
- Cramer: Forget Dollar — Buy Gold
- Fed`s Quantitative Easing Violates the Rule of Law
- “Good Yields” Guaranteed for Venezuelan Investors?
- 9 November Gold Price Tops Began a Correction Within a Move That Will Carry Gold to $1,600 by March
- Economies are Crumbling as Governments Play Musical Chairs with Money Printing
- Why Buying Bonds is a Bad Idea
- 200 Year Chart of the Dow/Gold Ratio
- IMF devalues the dollar inside SDR basket
- TUESDAY Market Excerpts
- Charts of the Week: Bonds Resting, Dollar Rising...Plus Implications for Gold
- Partial Payday for Gold
- Christmas With JSMineset!
- In The News Today
- Jim?s Mailbox
- Putting The Fed To Shame, Presenting The Galaxy's Biggest Bubble
- Gold Breaking Down
- California Will Default On Its Debt
- California will default on its debt, says Chris Whalen
- Gold Daily and Silver Weekly Charts
- 1beinki – Crash JP Morgan Buy Silver
- Oh Boy, California Munis Are Getting Crushed Again Today
- Precious Metals Patterns Reveal Bullish Outlook
- MODERN DAY HUNT BROTHERS: Buy Physical Silver & Beat the Banks
- Funds loading up on GLD
- Something Is Happening
- China cbank chief warns on fund flows, inflation
- Fixing Social Security… Some Other Day
- This past week in gold - Nov 15, 2010
- The first whisperings of the Crash JP Morgan Buy Silver campaign started last summer in Jardin du Luxembourg in Paris
- New CME margin requirements
- Watch The European Union Press Conference Over Ireland (And Other Things) Live
- China eyes price controls to fight inflation
| MAX KEISER'S CALL: CRASH JP MORGAN! BUY SILVER! Posted: 16 Nov 2010 10:22 PM PST
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| GoldSeek.com Radio Gold Nugget: Kevin Kerr & Chris Waltzek Posted: 16 Nov 2010 07:00 PM PST GoldSeek.com Radio Gold Nugget: Kevin Kerr & Chris Waltzek
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| Global Panics Just Not What They Used to Be Posted: 16 Nov 2010 06:01 PM PST In a perfect world, the Dow might have plummeted 500 points yesterday while gold and silver took flight like bats out of hell. Oh well. Sometimes you just have to take what you get. And what we got was a merely moderate selloff in the broad averages accompanied by commensurate weakness in bullion.
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| Robust Long Term Demand Fundamentals for Precious Metals Posted: 16 Nov 2010 05:40 PM PST Mike Stall submits: The precious metals space is poised for robust gains in the long term on the back of strong supply - and demand factors. Declining mine production for precious metals has resulted in a tight supply scenario over the past few years, triggering prices. Key producers including South Africa, the U.S., Australia and Russia are showing signs of a gradual shortfall in potential output, creating a global supply deficit. Two other reasons have coerced prices to attain present levels: the upturn in industrial activities post recession and the return of investors due to subside in volatility. With demand remaining strong, a flat to negative supply scenario augurs well for precious metals. Gold and Silver’s Safe Haven Appeal - Uncorrelated with Market MovementsThe strength in gold prices post recession shows that it is not only perceived as a hedge to protect wealth during an economic recession. Demand for gold has demonstrated endurance whatever the market conditions. Although imminent corrections cannot be ruled out, gold remains the investor’s safe haven – the safest bet when looking for diversification and growth. Complete Story »
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| A MUST READ! "Bond Mkt Implosion & Gold Tactics": Stewart Thomson Posted: 16 Nov 2010 04:41 PM PST I see a lot of gold analysts trying to gauge the "gold market correction" but they are seemingly unaware that the bond market just imploded, and Bill Gross basically issued a massive sell signal on his own fund, the world's largest bond fund. For the past few months I've urged you to understand that when the bond implodes, there would be initial weakness in gold followed by tremendous strength. Here and now, the words "Gold" and "Bond" must be mentioned in the same sentence, or you are out to gold market analysis lunch.
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| Gold Seeker Closing Report: Gold and Silver Fall Over 2% Posted: 16 Nov 2010 04:00 PM PST Gold saw only modest losses in Asia and London before it accelerated markedly lower in New York and ended not far from its noontime low of $1329.70 with a loss of 2.23%. Silver fell to as low as $24.991 before it bounced back higher in afternoon trade, but it still ended with a loss of 2.65%.
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| Does QE really stimulate economic activity? Posted: 16 Nov 2010 03:43 PM PST FGMR - Free Gold Money Report November 16, 2010 – Earlier this month the Federal Reserve announced its latest round of quantitative easing, long ago dubbed QE, but it should be called by what it really is – money printing. The Fed buys US government debt and turns it into currency. The process is somewhat arcane, but very simple at its core. US government debt does not circulate as currency. That would be too obvious a violation of the Constitution. The framers scorned “bills of credit”, which were the IOUs given to merchants and other suppliers who provided goods and services to the Continental Congress. These IOUs then circulated hand-to-hand as currency. They are similar in nature to the warrants issued by the insolvent government of California to its suppliers, though as I understand it, these warrants do not circulate as currency. Rather, these warrants are bought at a discount to their face value by banks in exchange for dollars, whic...
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| Posted: 16 Nov 2010 02:29 PM PST
The market crumbled today like Charles Rangel's reputation as apparently Europe went through the TSA's new back-scatter x-ray machine and was revealed to have a severely dangling Ireland. In addition to Europe being on the verge of another meltdown (or just a continuation of their previous one), China is trying to regulate inflation, and the Fed's asset buying strategy continues to confuse politicians like global warming, health care, and honesty.
The biggest news of the day though was that Ireland is in talks with everyone from the EU to the IMF to NAMBLA to try to reach a deal to help them meet their spiraling budget deficit. A bail out would allow them to avoid having to go to the bond markets to raise more debt where yields on Irish bonds continue to spike faster than a college student's heartbeat after shotgunning a Four Loko (incidentally, the FDA is set to soon rule on Four Loko and their ilk and early word is that they are likely to rule them "awesome"). The hold up in reaching a deal seems to be Ireland's desire to find other ways to turn the country's fortunes around such as the brilliant new business strategy of locating themselves next to twitter's offices and hoping for a business plan to emerge through Porter's 6th and most important force: Dumb fucking luck (and for those aspiring dick joke writers out there, Money McBags' dining room table has three vacant seats for the highest bidder).
If a bailout can't be reached, Ireland may have to resort to selling some natural treasures such as the Blarney Stone, Michael Flatley's shaved chest hair, and Katherine Jenkins, in order to raise funds. That said, Money McBags doesn't care which international organization jumps in (as the only international organization he fully supports is the Ukrainian Femen) so someone should just bail Ireland the fuck out (and the probability of that happening is whatever is higher than 100% likely) and celebrate over some pints of Guinness, or Europe should finally disband the whole fucking EU and be done with the charade of a unified Europe. It didn't work in the 1940s and it probably won't work now.
But it's not jut Ireland that is giving Europe problems today as Austria is dropping all kinds of schnitzel in the punch bowl by claiming that Greece has not lived up to their bail out promises. Citing the EU having to increase Greece's budget deficit three times already from "likely insolvent" to "Stephen Baldwin insolvent," Austrian finance minister Josef Proell got his bah humbug on and said that his country has not yet submitted their December contribution for Greece's bail out. While Austrian models continue to show Greece's economic situation as being dire (and if one of those models is Nicola Mar, then kudos to Austria's economists), Proell toned down his statements later in the day to say he thinks Greece is "on a good path" before mumbling "in bed."
The market also tumbled today as a result of rumors that China's government will take steps to curb inflation such as raising rates, instituting price controls, and sending inflation to its room before dinner. Chinese shares dropped 4% on this news as price controls could eat away company profits faster than Kirstie Alley on a bender.
In US macro news, wholesale prices rose by .4% which was below analyst guesses of .9% and was driven by gas prices rising 9.8% (and we saw that in yesterday's retail sales numbers as well). That said, if we get our Fed on and just look at core inflation (because why give a shit about the things that people really need to spend on such as food, gas, and botox injections), we see that core PPI was down .6% which was the biggest drop in four years and was led by a 3% drop in car prices and a 4.3% drop in pick-up truck prices. Of course finding out that expensive discretionary products need to be discounted to sell is less surprising than finding out kids who go to Yale are douchebags, so big fucking "duh" (Note to loyal readers of the award winning When Genius Prevailed, remember this bit of info for WGO's Q. And yes Money McBags is still short).
In other US macro news, home builder sentiment rose by 1 to 16 in November which means absolutely nothing to Money McBags except that anything under 50 is considered to be negative so anything under 20 must be hella fucking negative. Finally, industrial output was weaker than expected ending today's run of "who gives a shit" US macro news.
In the market, WMT put up a good Q and raised earnings guidance despite weakness in US same store sales as their customers continue to struggle with high unemployment rates and finding the right fashions. Same store US sales were down 1.3% which was the 6th consecutive quarterly decline as non-discretionary items continue to struggle worse than sales of The Economist's first annual Swimsuit Edition. HD also put up a good Q, and raised earnings guidance thanks to better cost controls and sales of dollies to help people move out of their foreclosed upon homes. That said, they did lower their full year revenue guidance a bit as according to their CEO "the economy is still a bit fucked up."
And here is something of which to make note (while here is something of which to make more than a note), retailers SKS, ANF, and TJX all put up good Qs and yet all struggled in the market today which usually means earnings have now been more than fully priced in and the sell off will start gaining steam. Finally, MAT rose sharply after it was announced that Carl Icahn had started accumulating a position and that the company is going to use its balance sheet to buy back stock, raise their dividend, and buy enough material to finally give Ken dolls the proper anatomy.
You can read more, including Money McBags getting his small cap on, at the award winning When Genius Prevailed.
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| James Turk - $400 Silver by 2013 to 2015 Posted: 16 Nov 2010 01:22 PM PST I have been projecting gold to hit $8,000 by 2013 to 2015, so that would equate to silver hitting $400, and that is well within the realm of possibility as silver reverts back to its historical mean." This is what happens in bull markets, prices climb to levels that previously seemed unimaginable.
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| $53,957 in Circulation for Every Ounce of Gold Posted: 16 Nov 2010 01:14 PM PST According to James Turk, the number is even more staggering when you use M3 because it captures all of the dollars in circulation, the total stock. It is the total amount of paper currency and total deposit currency within the banking system. And if you use M3, the actual number is $53,957 in circulation for every one ounce of gold. Turk commented, "That is even assuming the US actually possesses all of the gold it claims to own."
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| GET HER GOLD JEWELRY FOR CHRISTMAS Posted: 16 Nov 2010 12:51 PM PST When you have to exit the country because TSHTF, your wife can get the gold out of the country around her neck. Order now and get ginsu knives and a gold colored snuggie. http://www.heirloom24k.com/clk/TBP
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| Gene Arensberg's Got Gold Report for Nov. 14 posted in the clear Posted: 16 Nov 2010 12:27 PM PST 8:24p ET Tuesday, November 16, 2010 Dear Friend of GATA and Gold (and Silver): Gene Arensberg's complete Got Gold Report for November 14, with emphasis on the wild happenings in the silver market, has been posted in the clear at the Got Gold Report Internet site here: http://www.gotgoldreport.com/2010/11/sunday-ggr-now-public.html CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Sona Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit, Company Press Release, October 27, 2010 VANCOUVER, British Columbia -- Sona Resources Corp. reports on five drillling holes in the third round of assay results from the recently completed drill program at its 100 percent-owned Elizabeth Gold Deposit Property in the Lillooet Mining District of southern British Columbia. Highlights from the diamond drilling include: -- Hole E10-66 intersected 17.4g gold/ton over 1.54 metres. -- Hole E10-67 intersected 96.4g gold/ton over 2.5 metres, including one assay interval of 383g of gold/ton over 0.5 metres. -- Hole E10-69 intersected 85.4g gold/ton over 4.03 metres, including one assay interval of 230g gold/ton over 1 metre. Four drill holes, E10-66 to E10-69, targeted the southwestern end of the Southwest Vein, and three of the holes have expanded the mineralized zone in that direction. The Southwest Vein gold mineralization has now been intersected over a strike length of 325 metres, with the deepest hole drilled less than 200 metres from surface. "The assay results from the Southwest Zone quartz vein continue to be extremely positive," says John P. Thompson, Sona's president and CEO. "We are expanding the Southwest Vein, and this high-grade gold mineralization remains wide open down dip and along strike to the southwest." For the company's full press release, please visit: http://sonaresources.com/_resources/news/SONA_NR19_2010.pdf Support GATA by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Sona Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit, Company Press Release, October 27, 2010 VANCOUVER, British Columbia -- Sona Resources Corp. reports on five drillling holes in the third round of assay results from the recently completed drill program at its 100 percent-owned Elizabeth Gold Deposit Property in the Lillooet Mining District of southern British Columbia. Highlights from the diamond drilling include: -- Hole E10-66 intersected 17.4g gold/ton over 1.54 metres. -- Hole E10-67 intersected 96.4g gold/ton over 2.5 metres, including one assay interval of 383g of gold/ton over 0.5 metres. -- Hole E10-69 intersected 85.4g gold/ton over 4.03 metres, including one assay interval of 230g gold/ton over 1 metre. Four drill holes, E10-66 to E10-69, targeted the southwestern end of the Southwest Vein, and three of the holes have expanded the mineralized zone in that direction. The Southwest Vein gold mineralization has now been intersected over a strike length of 325 metres, with the deepest hole drilled less than 200 metres from surface. "The assay results from the Southwest Zone quartz vein continue to be extremely positive," says John P. Thompson, Sona's president and CEO. "We are expanding the Southwest Vein, and this high-grade gold mineralization remains wide open down dip and along strike to the southwest." For the company's full press release, please visit: http://sonaresources.com/_resources/news/SONA_NR19_2010.pdf Support GATA by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon: * * * Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit:http://www.gata.org/node/16 ADVERTISEMENT Prophecy Receives Permit To Mine at Ulaan Ovoo in Mongolia VANCOUVER, British Columbia -- Prophecy Resource Corp. (TSX-V:PCY, OTCQX: PRPCF, Frankfurt: 1P2) announces that on November 9, 2010, it received the final permit to commence mining operations at its Ulaan Ovoo coal project in Mongolia. Prophecy is one of few international mining companies to achieve such a milestone. The mine is production-ready, with a mine opening ceremony scheduled for November 20. Prophecy CEO John Lee said: "I thank the government of Mongolia for the expeditious way this permit was issued. The opening of Ulaan Ovoo is a testament to the industrious and skilled workforce in Mongolia. Prophecy directly and indirectly (through Leighton Asia) employs more than 65 competent Mongolian nationals and four expatriots. The company also reaffirms its commitment to deliver coal to the local Edernet and Darkhan powerplants in Mongolia." The Ulaan Ovoo open pit mine is 10 kilometers from the Russian border and within 120km of the Nauski TransSiberian railway station, enabling transportation of coal to Russia and its eastern seaports. Thermal coal prices are trading at two-year highs at Russian seaports due to strong demand from Asian economies. For the complete press release, please visit: http://prophecyresource.com/news_2010_nov11.php
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| Gene Arensberg's Got Gold Report for Nov. 14 posted in the clear Posted: 16 Nov 2010 12:27 PM PST 8:24p ET Tuesday, November 16, 2010 Dear Friend of GATA and Gold (and Silver): Gene Arensberg's complete Got Gold Report for November 14, with emphasis on the wild happenings in the silver market, has been posted in the clear at the Got Gold Report Internet site here: http://www.gotgoldreport.com/2010/11/sunday-ggr-now-public.html CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Sona Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit, Company Press Release, October 27, 2010 VANCOUVER, British Columbia -- Sona Resources Corp. reports on five drillling holes in the third round of assay results from the recently completed drill program at its 100 percent-owned Elizabeth Gold Deposit Property in the Lillooet Mining District of southern British Columbia. Highlights from the diamond drilling include: -- Hole E10-66 intersected 17.4g gold/ton over 1.54 metres. -- Hole E10-67 intersected 96.4g gold/ton over 2.5 metres, including one assay interval of 383g of gold/ton over 0.5 metres. -- Hole E10-69 intersected 85.4g gold/ton over 4.03 metres, including one assay interval of 230g gold/ton over 1 metre. Four drill holes, E10-66 to E10-69, targeted the southwestern end of the Southwest Vein, and three of the holes have expanded the mineralized zone in that direction. The Southwest Vein gold mineralization has now been intersected over a strike length of 325 metres, with the deepest hole drilled less than 200 metres from surface. "The assay results from the Southwest Zone quartz vein continue to be extremely positive," says John P. Thompson, Sona's president and CEO. "We are expanding the Southwest Vein, and this high-grade gold mineralization remains wide open down dip and along strike to the southwest." For the company's full press release, please visit: http://sonaresources.com/_resources/news/SONA_NR19_2010.pdf Support GATA by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Sona Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit, Company Press Release, October 27, 2010 VANCOUVER, British Columbia -- Sona Resources Corp. reports on five drillling holes in the third round of assay results from the recently completed drill program at its 100 percent-owned Elizabeth Gold Deposit Property in the Lillooet Mining District of southern British Columbia. Highlights from the diamond drilling include: -- Hole E10-66 intersected 17.4g gold/ton over 1.54 metres. -- Hole E10-67 intersected 96.4g gold/ton over 2.5 metres, including one assay interval of 383g of gold/ton over 0.5 metres. -- Hole E10-69 intersected 85.4g gold/ton over 4.03 metres, including one assay interval of 230g gold/ton over 1 metre. Four drill holes, E10-66 to E10-69, targeted the southwestern end of the Southwest Vein, and three of the holes have expanded the mineralized zone in that direction. The Southwest Vein gold mineralization has now been intersected over a strike length of 325 metres, with the deepest hole drilled less than 200 metres from surface. "The assay results from the Southwest Zone quartz vein continue to be extremely positive," says John P. Thompson, Sona's president and CEO. "We are expanding the Southwest Vein, and this high-grade gold mineralization remains wide open down dip and along strike to the southwest." For the company's full press release, please visit: http://sonaresources.com/_resources/news/SONA_NR19_2010.pdf Support GATA by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon: * * * Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit:http://www.gata.org/node/16 ADVERTISEMENT Prophecy Receives Permit To Mine at Ulaan Ovoo in Mongolia VANCOUVER, British Columbia -- Prophecy Resource Corp. (TSX-V:PCY, OTCQX: PRPCF, Frankfurt: 1P2) announces that on November 9, 2010, it received the final permit to commence mining operations at its Ulaan Ovoo coal project in Mongolia. Prophecy is one of few international mining companies to achieve such a milestone. The mine is production-ready, with a mine opening ceremony scheduled for November 20. Prophecy CEO John Lee said: "I thank the government of Mongolia for the expeditious way this permit was issued. The opening of Ulaan Ovoo is a testament to the industrious and skilled workforce in Mongolia. Prophecy directly and indirectly (through Leighton Asia) employs more than 65 competent Mongolian nationals and four expatriots. The company also reaffirms its commitment to deliver coal to the local Edernet and Darkhan powerplants in Mongolia." The Ulaan Ovoo open pit mine is 10 kilometers from the Russian border and within 120km of the Nauski TransSiberian railway station, enabling transportation of coal to Russia and its eastern seaports. Thermal coal prices are trading at two-year highs at Russian seaports due to strong demand from Asian economies. For the complete press release, please visit: http://prophecyresource.com/news_2010_nov11.php
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| Gold Analysis and Strategy 13th of November 2010 Posted: 16 Nov 2010 11:39 AM PST During the last two weeks Gold showed enormous volatility. Ahead of the FED interest rate decision prices came down to US$1,325.00 once again only to explode from here within 5 days to reach a short term top at US$1,425.00. Read More...
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| The Lion and the Crocodile - November 16, 2010 Posted: 16 Nov 2010 11:31 AM PST The Lion and the Crocodile - Casey's Daily Dispatch [LIST] [*]Sign Up Now! [*]| [*]RSS Feed [*]| [*]Print this [*]| [*]Visit the Archives [*]| [*]Email to a Friend [*]| [*]Back to All Publications [/LIST] November 16, 2010 | [url]www.CaseyResearch.com[/url] Dear Reader, First off, before I forget to mention it (as I did yesterday), the current edition of BIG GOLD is one of the best ever, featuring an important, perspective-building interview on today's gold markets with top-performing gold fund manager John Hathaway. And, of course, details on t...
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| Stocks Spanked, QE2 Backfiring Posted: 16 Nov 2010 11:31 AM PST The 5 min. Forecast November 16, 2010 03:08 PM by Addison Wiggin [LIST] [*] Bond vigilantes awaken, stocks taken to the woodshed… [*] Dan Amoss on the Fed “risking ultimate disaster” [*] The overprotective directive from Chicago that sent gold tumbling overnight [*] Congress back in session… the one sensible thing it might do soon, maybe… nah forget it [*] Auto dealership devises semi-automatic stimulus… cross border concerns in the great Pacific Frontier… a market immune to “high frequency trading” programs… and more! [/LIST] The good ship QE2 was supposed to lower interest rates. Ben Bernanke promised. He and the Fed even made sure to concentrate most of their Treasury purchases on notes of medium-term duration. Lower rates, the theory goes, would inspire businesses and consumers to go deeper in debt… and stimulate “aggregate demand”… and goos...
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| The Best Gold Storage Ideas You've Never Considered Posted: 16 Nov 2010 11:18 AM PST By Terry Coxon, Casey Research Tuesday, November 16, 2010 If you could only do one thing to protect yourself from the hazards of being tied to the U.S. economic system, buying physical gold would be our first recommendation. Gold is independent of any government, and is recognized and traded everywhere in the world. Because of its intrinsic fundamentals – it's rare, durable, easy to identify, divisible, and quite portable – it's been used for centuries as money and is a reliable, long-term store of value. I'm sure many DailyWealth readers know all this. But what many readers might not know is the answer to this critical question: "Okay, I've bought some gold bullion… Where is the best place to store it?" The right answer most people never hear is, "In more than one place." You see, for the maximum in wealth security, your gold storage plan should have both a domestic component… and an offshore component. Holding a substantial amount...
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| Keiser Report No. 95: Markets! Finance! Silver! Posted: 16 Nov 2010 11:15 AM PST
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| Cramer: Forget Dollar — Buy Gold Posted: 16 Nov 2010 11:15 AM PST by Jim Cramer & Debra Borchardt He says gold in the $1300′s is "a gift" and should be bought into this current spate of weakness.
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| Fed`s Quantitative Easing Violates the Rule of Law Posted: 16 Nov 2010 11:06 AM PST The Federal Reserve represents global banking interests who have overstepped their legal authority. Their Quantitative Easing program is an explicit violation of the Constitution. By deliberately devaluing the dollar and causing the price of basic necessities to rise, the Federal Reserve is, as a matter of strategic policy, sacrificing a significant percentage of the US population for the benefit of a few global bankers. In the process, they are also igniting a global currency war that threatens the security of the American people. In clear terms, the Federal Reserve’s actions represent a declaration of war against the people of the United States.
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| “Good Yields” Guaranteed for Venezuelan Investors? Posted: 16 Nov 2010 11:00 AM PST Most of the work of activist governments is hopelessly ineffective and unproductive. But that doesn't stop them. When their programs don't work, the feds rarely wonder why. Instead, they force the issue…with more regulation, penalties and coercion. Look at Hugo Chavez in Venezuela. Here's the latest from Bloomberg: [Venezuela] will offer local investors high yields to stimulate saving and allow nationalized companies to seek financing. The Public Bond Market, which will begin operations in December, will allow state-run companies to sell debt to finance operations and individuals to seek investment opportunities, Chavez said. Chavez tightened his grip on the financial industry this year by closing more than a dozen banks and 40 brokerages that he said committed "fraud" and set artificial exchange rates. He said investors will have their investments guaranteed by the state. "The banking and brokerage crisis has allowed us to draft this law," Chavez said yesterday on state television during his Alo Presidente program. "Don't spend all your year-end bonuses, invest in the bourse, and the state will guarantee your money with good yields." Hey…there's a deal! The feds will guarantee your investments…"with good yields." Leave it to the government to come up with a can't-lose investment program. What do you think, dear reader? Will investors come out ahead? Can an investment program run by the Venezuelan feds, investing in businesses owned by the government, give better returns than a program that invests in money-grubbing enterprises run by greedy capitalists? You decide. Bill Bonner "Good Yields" Guaranteed for Venezuelan Investors? originally appeared in the Daily Reckoning. The Daily Reckoning, offers a uniquely refreshing, perspective on the global economy, investing, gold, stocks and today's markets. Its been called "the most entertaining read of the day."
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| 9 November Gold Price Tops Began a Correction Within a Move That Will Carry Gold to $1,600 by March Posted: 16 Nov 2010 10:55 AM PST Gold Price Close Today : 1338.30 Change : (30.10) or -2.2% Silver Price Close Today : 25.229 Change : (0.859) cents or -3.3% Gold Silver Ratio Today : 53.05 Change : 0.593 or 1.1% Silver Gold Ratio Today : 0.01885 Change : -0.000213 or -1.1% Platinum Price Close Today : 1642.80 Change : -26.70 or -1.6% Palladium Price Close Today : 644.45 Change : -24.05 or -3.6% S&P 500 : 11,788.34 Change : -19.41 or -0.2% Dow In GOLD$ : $170.28 Change : $ 1.07 or 0.6% Dow in GOLD oz : 8.237 Change : 0.052 or 0.6% Dow in SILVER oz : 436.95 Change : -6.92 or -1.6% Dow Industrial : 11,023.81 Change : -178.47 or -1.6% US Dollar Index : 78.62 Change : 0.566 or 0.7% The GOLD PRICE broke through the trap door at $1,355 and never stopped falling till it hit support at $1,329.80 right before noon, then double bottomed. at the same price just before 1:00 p.m. It began drifting up but Comex still settled down only (!) $30.10 at $1,338.30. In the aftermarket gold strengthened, if from no other source then from dealers covering shorts. The GOLD PRICE touching $1,317.60 would make a 38.2% correction of the July - November move, and 38.2% is a frequently observed correction. The equivalent correction would carry the SILVER PRICE a little lower, to 2452c. What drop we've seen so far might suffice, and that little double bottom today implies gold found firm support at $1,330. The SILVER PRICE chart didn't play out quite like gold's. It broke support at 2550c, then dribbled down to 24.98 at noon. That low inspired buying that floated silver up barely over 2550c. On Comex silver closed 85.9c lighter than yesterday at 2522.9c. Since then it has oscillated around 2540c. Again, today may have been correction enough to have sated silver's appetite for correction, but recall that strong lateral support stands at 2490c - 2500c. To confirm a turnaround silver must close above 2555c. By the way, the 20 DMA stands at 2511c, so I would class today as bouncing off the 20 DMA, which has been catching silver since last August. My opinion hasn't changed: 9 November tops began a correction within a move that will carry gold to $1,600 by March, not a major peak. Okay, I never do this, but the case is desperate enough to force me to desperate measures. The US Senate this week is voting on cloture on S. 510. This piece of sorry Bib Brotherism is clothed in lies, beginning with its name, "The Food Safety Bill." It would expand Food and Drug Administration authority over processed and fresh food, and to impose more bone-headed, tyrannical regulations on small farmers. Whole point of this monstrosity is to make the world save for Agribusiness and Giant Food Corporations, and to squelch all their small farmer competition. Oh, and don't forget protecting Big Pharma by reducing our access to dietary supplements. I have heard that S. 510 purports to regulate even food produced from your own garden and criminalize seed saving. What can you do? Call your senators, both of them, at (202) 224-3132. Tell them to KILL (as in slay utterly) S. 510, The Food Safety Bill. In your own words tell them that you oppose this bill and that it will crush freedom and nutritious food production in America. Tell them you will be watching how your senator votes on this bill and that you have a long memory that stretches from election to election. A rising US dollar is giving silver and gold bad toothaches. Today the nasty dollar rose 73.1 basis points, nearly 1%, and is now trading at 79.249. Once the buck pierced 78.70, it sprang in one tall bound to 79.40. That shouldn't have surprised y'all. Yesterday I made a bad typo, one I often make, typing "not" for "now". I wrote that the dollar "hath not reached its 50 DMA (78.62)" when I meant "hath now reached." Once it cleared that 50 DMA, it jumped. That's what you saw today. That leaves the next target as the August intraday low at 80.08, and the 200 DMA at 81.77. Meanwhile, the Euro is sinking like the balance in your bank account when your brother-in-law borrows your debit card. The euro has now dropped below its 50 DMA (1.3640), so it must either turn around quickly, or continue sinking toward its 200 DMA at 1.3158, or August high at 1.3334. Only reason to bother looking at the nasty Euro is to guess therefrom what the dollar might do. As long as the Euro is plunging, the Dollar Index will keep on rallying. When it looks ready to turn around, we can begin suspecting that the dollar's rally will stop. Bear in mind the new limits the dollar has set today. A fall below 78.60 takes the dollar lower, a rise above 79.40 buoys the dollar higher. STOCKS insist on falling and falling. Today's fall was serious. Dow plunged 178.47 to 11,023.81 while the S&P 500 tumbled 19.41 to 1,178.34. That brings the Dow to psychologically weighty 11,000 mark, as well as the 50 DMA (10,966.27). The MACD momentum indicator is falling, faster every day, and the RSI says, "Let me drop further!" Given that the stock market generally turns around very slowly, there's a good chance we might see a bounce off the 50 DMA before the final plunge through it. Maybe that will be the Santa Claus rally this year, giving gifts to all those money managers who need to clean up their performance before year-end. Stay out of stocks. On this day in 1798 Kentucky became the first state to nullify an act of Congress, the Alien and Sedition Act passed by the Federalist congress to stifle criticism. Nowadays we don't do nullification because we don't have any state legislatures with any courage to speak of. Well, with a few notable exceptions. Argentum et aurum comparenda sunt -- -- Gold and silver must be bought. - Franklin Sanders, The Moneychanger The-MoneyChanger.com © 2010, The Moneychanger. May not be republished in any form, including electronically, without our express permission. To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's primary trend is up, targeting at least $3,130.00; silver's primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold; US$ or US$-denominated assets, primary trend down; real estate in a bubble, primary trend way down. Whenever I write "Stay out of stocks" readers inevitably ask, "Do you mean precious metals mining stocks, too?" No, I don't. 
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| Economies are Crumbling as Governments Play Musical Chairs with Money Printing Posted: 16 Nov 2010 10:43 AM PST If there were a truism to fit a broad cross-section of behaviors in our society today, the catchphrase ‘desperate men do desperate things’ fits well, for sure. This is because you can see it everywhere on an increasing basis as economies of all shapes and sizes disintegrate. And it spreads like a disease, reaching all quarters of our society(s), in one way or another, propagated at the core by greedy money-center bankers and their political oligarchs hopelessly attempting to prevent a collapse of the larger fiat currency economy, hegemony economics, and US Dollar ($) supremacy. Here, it’s important to understand that when the US can no longer print the money to pay its bills the present game of musical chairs will cease and centralization will quickly reverse into regionalism, returning us to more primitive but sound economies.
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| Why Buying Bonds is a Bad Idea Posted: 16 Nov 2010 10:00 AM PST If there are two things that you can count on, it is that you have got to be pretty quick to get the last piece of pizza before I snag it, and that I am never remiss in telling people that buying bonds at these insanely-low yields is the Exact Wrong Thing (EWT) to do. Unfortunately, my latest "student" was the cashier at the grocery store, who, it turns out, knows absolutely squat about what bonds are, although she admits that she has heard the word before. Predictably, the conversation went nowhere until I commented about how prices are higher, and she says that a lot of customers are complaining about the higher prices. Seizing the opportunity, I said, "That's because the foul Federal Reserve has been creating so many trillions of dollars for so many years! And now the Fed is going to create that much money every freaking year so that the Fed can use it to buy up the $2 trillion in bonds that the Treasury will have to float this year so that the Obama administration can deficit-spend it, which is so freaking much money pouring into the economy that it will make prices go up even more than they have!" I thought I saw a glimmer of interest in her eyes at my brilliant synopsis of the situation in the way she kept nervously glancing over her shoulder at the manager so that he could, I assume, come over to share in this interesting conversation. Encouraged, I continued, "And it is this inflation in prices that will make people say 'Buy bonds? Screw that!' and not buy bonds because they yield so little while inflation is so high, which means that if they buy the bonds that yield less than the rate of inflation in prices, they are actually losing money in the form of lower buying power!" I looked directly at her to let her know that I was coming to my terrific summation, which is, "And that means that the bonds will have to yield more to attract buyers, which means that the prices of bonds will go down, handing an unrealized (at best!) capital loss on the owner of bonds! Now do you see why buying bonds is a bad idea?" I looked at her expectantly, hoping that she would say, "Wow! Now I understand! Thanks for the information, Brilliant Handsome Stranger (BHS)! But, since you're so smart, how can I make a profit on this terrific analysis?" whereupon I would have told her to buy gold, silver and oil stocks. But she didn't. She just looked at me with this stupid bored look on her face and, handing me the register tape, said in a monotone, "That'll be $138.62." Perhaps she would have been more impressed by Mark Lundeen's Bear's Eye View (BEV) analysis, which contains the highly interesting facts that "Bond valuations in 2010 are obscenely inflated, with bond yields far below actual consumer price inflation. This is a highly unstable situation, very similar to the bond market of 1938 to 1981, a period when money invested in the bond market purchased only tickets to poverty. This is what happened as bond yields rose from 3% to 15%, while rising consumer prices gnawed away at the purchasing power of fixed income investments." "Aha," I thought! "Even she could not fail to be impressed with the fact that the last time this happened, bond yields rose 500%!" And that would be before her reading where he says, "Beginning in 1981, with the 30-year US Treasury Bond at record high yields of 15%, bonds began a 30-year bull market, just one year after gold began its 21-year bear market. But beginning in 2001, something very strange happened: gold and bond yield trends decoupled. For the past decade, rising gold prices sounded the siren of problems to come in the global financial markets, even as the bull market in bonds continued for an additional 10 years." The best part is when he says, "As a matter of financial survival, bond yields should have been raised with the price of gold for the past 10 years, exactly as happened from 1969-80!" but that, ominously, they did not, and he goes on that while bond prices have not risen even as gold was signaling trouble of the inflationary kind aplenty, "I assure you that someday soon they will." And the inflation that should be driving bond yields up and bond prices down, and which will soon be driving bond yields up and bond prices down, also means that gold, silver and oil will gloriously rise, rise, rise along with it, too, making it all so wonderfully easy that one will involuntarily gleefully shout, "Whee! This investing stuff is easy!" The Mogambo Guru Why Buying Bonds is a Bad Idea originally appeared in the Daily Reckoning. The Daily Reckoning, offers a uniquely refreshing, perspective on the global economy, investing, gold, stocks and today's markets. Its been called "the most entertaining read of the day."
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| 200 Year Chart of the Dow/Gold Ratio Posted: 16 Nov 2010 09:59 AM PST 200 Year Chart of the Dow/Gold Ratio from Gold .:. ShareLynx Gold .:. Gold Charts .:. Gold Markets .:. Gold Articles .:. Precious Metals .:. Alternative Self-Sufficiency .:. Eclectic Scategories ...
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| IMF devalues the dollar inside SDR basket Posted: 16 Nov 2010 09:43 AM PST IMF devalues dollar inside SDR basket Rickards: So dollar now losing to gold and SDR
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| Posted: 16 Nov 2010 09:42 AM PST Gold price dips amid broad market sell-off The COMEX December gold futures contract closed down $30.10 Tuesday at $1338.40, trading between $1329.00 and $1364.30 November 16, p.m. excerpts: see full news, 24-hr newswire…
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| Charts of the Week: Bonds Resting, Dollar Rising...Plus Implications for Gold Posted: 16 Nov 2010 09:34 AM PST Since November 3, after the announcement of QE2, the bond market and the dollar have reversed their powerful megatrends, which could have implications for gold. The bond market went straight up from April into November, from about 115 to 128 ... Read More...
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| Posted: 16 Nov 2010 09:23 AM PST We can almost guarantee that the price of gold will be moving higher tomorrow, Wednesday. Why? Because we were stopped on half of our short-term gold positioning today, that's why! (Smiling.) At the 11:34 mark gold traded under our $1,337 self-imposed stop level and then continued to trade below that mark for an hour. At 12:39 we hit the bid with one-half of our positioning at an equivalent of $1,333.20 and cued up the other half to fire.
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| Posted: 16 Nov 2010 09:20 AM PST View the original post at jsmineset.com... November 16, 2010 02:17 PM Dear CIGAs, Looking for a unique and educational gift for someone special for Christmas? Perhaps you have just been putting off getting your own copy of one of our Compendiums or A Pocketbook Of Gold? Well if you or a loved one would like a copy, now is your chance if you wish for it to arrive before Christmas. We release Compendiums every couple years to help cover the operating costs of running a site like JSMineset. Over the years we have gotten quite large and these costs have grown substantially. If you like what we do here please purchase a copy – not only will you be giving someone a very unique and useful gift, you will be supporting a good cause and allow us to continue providing this service free of charge. **PLEASE NOTE YOU DO NOT NEED A PAYPAL ACCOUNT TO PURCHASE ANY OF THE COMPENDIUM SETS OR A POCKETBOOK OF GOLD. ORDERS SHOULD ARRIVE WITHIN 2-4 WEEKS DEPENDING ON YOUR LOCATION** What you will receiv...
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| Posted: 16 Nov 2010 09:20 AM PST View the original post at jsmineset.com... November 16, 2010 01:49 PM Thought For The Evening Gold will trade at and above $1650. The international investment banks screwed over the world one more time in a short the euro cover operation. It is so transparent that I would call it HD and Blu Ray quality, yet so many of you got snookered yet again. The script is a duplicate of last time with every actor playing their part to perfection. The sad part is many of you will again also play the part the next time these guys need five or six billion more for the bonus accounts. Has it ever dawned on you that playing this game with credit, either in shares or futures, is a death wish for the public? So many of you will do it again when Gold reaches $100 to $200 higher. It happens every time. Jim Sinclair's Commentary The media is really working it to get that cover in the euro for the usual suspects. The only thing financial TV and the media are working harder on is getting the ...
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| Posted: 16 Nov 2010 09:20 AM PST View the original post at jsmineset.com... November 16, 2010 08:48 AM Hi Dan, Casey Research posted the article below very recently and it gave me a mild shock, I admit. I would very much appreciate any comment. Have you or Jim mentioned any of these issues in the past, which I might have overlooked? Kindest regards, CIGA Rick Rick, If the US were to actually default on its debt, it would potentially risk a war with China whose national wealth would be wiped out overnight. Gold will be brought into the monetary system at some point in the future and will then stay at a permanent higher level. The US does not need to outlaw private ownership of gold. That is idiotic thinking. What it needs to do is to only allow the price of gold to move to much, much higher levels. The reason that Roosevelt passed an executive order forbidding private ownership of gold in the US back during the Great Depression was because at that time, the US was on a direct gold standard domestically and ne...
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| Putting The Fed To Shame, Presenting The Galaxy's Biggest Bubble Posted: 16 Nov 2010 08:42 AM PST
Some delightful observations on two sets of bubbles by United-ICAP's Walter Zimmerman: one are those blown with impunity by the Federal Reserve; the other are those that put even the Greenspan-Bernanke legacy to shame, with a diameter of 50,000 light years. The latter are entertaining, but the former are far more relevant to our everyday lives. And on those, Zimmerman says the following: "Now if one studies history one finds out that the Federal Reserve was formed to prevent speculative panics, to maintain the value of the dollar, to preserve the purchasing power of the consumer, and to responsibly manage the nations money supply. Has an organization ever strayed as far from accomplishing its goals as the Fed?" We can only hope Princeton's cosmological program is subpar (unlikely), as otherwise Bernanke may decide that 50,000 light years across is a perfectly reasonable number for a bubble. The next question, of course, is what amount of dollar bills would fill up a sphere with a radius of 25k light years... Observations from Walter Zimmerman, United-ICAP The Golden Age of the Speculative Bubble We have noted before that we have all been passing through a golden age of speculative financial bubbles. Since the year 2000 the history of the financial markets has been the history of a series of bubbles. By now we are all familiar with the sequence. First the speculative bubble inflates, then the bubble bursts, and then a financial panic ensues. From 2000 the internet bubble burst. From 2005 the real estate bubble burst. From 2007 the stock market bubble burst. From 2008 the commodity bubble burst. As we write this it would appear that the bond bubble and the gold bubble are now bursting. Never before in history has there been such an extended and frenetic sequence of speculative bubbles. This observation naturally raises a few big questions. For example, where is all the money coming from? Why are traders and investors not picking up on the destructive effect these bubbles have on preserving and creating wealth? What is it about our financial system that lends it to such prolific speculative bubble creation? How did we get here? How can anyone maintain that the path that led us all here is the path of progress? And how does the financial system move beyond this destructive frenzy? Many blame Alan Greenspan for initiating the bubble economy. There is an excellent book that details this case. It is “Greenspan’s Bubbles” by William A. Fleckstein. If one digs a bit deeper one finds that the very structure of the Federal Reserve is a co-conspirator in all this. There is an excellent book that delves into this aspect. It is “The Mystery of Banking” by Murray Rothbard. We would just like to make a few observations before introducing the largest bubble yet found by science. We would first note that investment banks used to make money by actually investing in America. They would connect investment capital with companies that needed capital to grow. Now investment banks make their money by trading. In perhaps the most obvious case Goldman Sachs made 69% of their income during the most recent quarter from trading. While they may be the most extreme instance, among the so-called investment banks they are also the most envied. Part of the problem may be that this country has been living beyond its means since the 1960’s. One result is that pension funds are under-funded by trillions of dollars. Governments on all levels are technically bankrupt. In the United States we have an entire generation of baby boomers that are about to retire but somehow forgot to save any money. Complicating their efforts is the fact that one in four Americans are underwater on their mortgage. Everywhere you look one sees a great need for large amounts of fast cash. Who these days has the patience and the luxury of time to actually invest? Everyone knows that trading is a faster path to riches. But how can everyone make money trading at the same time? This is the herding dynamic that creates speculative bubbles. Now if one studies history one finds out that the Federal Reserve was formed to prevent speculative panics, to maintain the value of the dollar, to preserve the purchasing power of the consumer, and to responsibly manage the nations money supply. Has an organization ever strayed as far from accomplishing its goals as the Fed? Big Speculative Bubbles: Art Imitating Nature? “No form of Nature is inferior to Art; for the arts merely imitate natural forms.” Meditations. xi. 10. Marcus Aurelius The fields of economics and finance as they are practiced today are clearly not sciences. And we would not be overly generous to call them art forms. In both the arts and modern day finance creativity is the key. In both the arts and finance things are being done today that have never been done before. Both fields lend themselves to excess, as in both fields big productions are popular. So if the field of modern day finance is an art, and if the output of this art form is the speculative bubble, we should not be surprised to find that bubbles are common in nature. In one of the great ironies of our age of the speculative financial bubble, science has just found what could well be one of the largest bubbles in Nature. And just as academic economists are clue-less as to what is behind the hectic sequence of speculative financial bubbles, cosmologists and astronomers are stumped by what could have possibly created the massive bubbles just discovered. See next page. These newly discovered gamma-ray bubbles extend out roughly 50,000 light-years or about half the diameter of our Milky Way galaxy. And the bubbles are centered at the core of the Milky Way. Thankfully the bubbles are not centered over planet Earth. These are gamma-ray bubbles and gamma rays are the most energetic form of radiation by far. They were found based on observations by Fermi - an orbiting gamma ray detector. At this early stage scientists can only speculate as to what could have possibly produced such enormous and energetic bubbles. Alan Greenspan may well be much older than he looks, but he is neither old enough nor powerful enough to have produced bubbles this big. It does seem rather safe to suppose that scientists will have these gigantic bubbles completely figured out well before economists realize that their own ill-conceived financial policies are behind the bountiful bubble creation that began over ten years ago in year 2000 - and as yet show no signs of subsiding. Meanwhile we have new financial bubbles bursting in air. A financial fourth of July is upon us. Our technical analysis suggests the following:
“Viewed in an artist’s illustration created by NASA, the structure looks like two luminescent, purple, egg-shaped ovals sitting
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| Posted: 16 Nov 2010 08:40 AM PST courtesy of DailyFX.com November 16, 2010 07:32 AM Weekly Candles Prepared by Jamie Saettele Gold has formed 2 doji last week and a weekly key reversal. When combined with RSI divergence (waning momentum) and the long term resistance line (shown last week), the technical picture is bearish. Coming under 1315 would bolster the reversal scenario....
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| California Will Default On Its Debt Posted: 16 Nov 2010 08:29 AM PST  Nowhere has this collapse been more visible than California, which faces a massive $25 billion shortfall and red ink for as far as the eye can see. After years in which every looming financial crisis has been met with a government bailout, you might think that the same solution awaits California, as well as all the other states that have huge obligations that they can't afford to meet. But this time that may not happen, says Chris Whalen, a financial industry analyst and Managing Director of Institutional Risk Analytics. In fact, Whalen thinks that California will default on its debt--hammering all the pension funds and other investors who have loaded up on apparently safe state bonds. The state won't immediately default, Whalen says. It will start by issuing the same sort of IOUs that it issued to by itself time during its budget crisis last year. But, eventually, the debts will have to be restructured, and this will result in those who own California's bonds receiving less than 100 cents on the dollar. Why won't California just get a bailout? Because the Republicans now control Congress, Whalen says. And also because, if California gets bailed out, dozens of other states will immediately line up with their hands out. The public is fed up with bailouts, Whalen says--and eventually, the country will be forced to face up to its bad debts and write them off. More Here.. 
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| California will default on its debt, says Chris Whalen Posted: 16 Nov 2010 08:17 AM PST by Henry Blodget Nowhere has this collapse been more visible than California, which faces a massive $25 billion shortfall and red ink for as far as the eye can see. After years in which every looming financial crisis has been met with a government bailout, you might think that the same solution awaits California, as well as all the other states that have huge obligations that they can't afford to meet. But this time that may not happen, says Chris Whalen, a financial industry analyst and Managing Director of Institutional Risk Analytics. In fact, Whalen thinks that California will default on its debt — hammering all the pension funds and other investors who have loaded up on apparently safe state bonds. … The public is fed up with bailouts, Whalen says — and eventually, the country will be forced to face up to its bad debts and write them off. Of course, if Whalen is right, the country could have a major crisis on its hands.
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| Gold Daily and Silver Weekly Charts Posted: 16 Nov 2010 08:08 AM PST |
| 1beinki – Crash JP Morgan Buy Silver Posted: 16 Nov 2010 08:05 AM PST
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| Oh Boy, California Munis Are Getting Crushed Again Today Posted: 16 Nov 2010 07:59 AM PST This is getting scary. Following a week of utter drubbing in the muni, California bonds are getting crushed today. The PIMCO California Municipal Income Fund is down 3%. There's something extremely PIIG-like about the speed of this collapse right now. Bear in mind that California has at least $12 billion in fresh auctions this week
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| Precious Metals Patterns Reveal Bullish Outlook Posted: 16 Nov 2010 07:51 AM PST Chris Mack submits: Gold and silver markets have finally reverted to their normal behavior, as the CME Group (CME) has announced that additional margin increases and commercial shorts have increased their buying on the downside. This is good news because the federal government and banks are financing excellent opportunities for investors who are paying attention. Complete Story »
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| MODERN DAY HUNT BROTHERS: Buy Physical Silver & Beat the Banks Posted: 16 Nov 2010 07:48 AM PST
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| Posted: 16 Nov 2010 07:34 AM PST Which fund managers are loading up on GLD: – Chris Shumway bought GLD – ~$270 million (~2 million shares) – Julian Robertson bought GLD – ~$247 million (~2 million shares) – Daniel Loeb bought GLD -~ $15 million (115 thousand shares) – Peter Thiel bought GLD -~ $11 million (100 thousand shares)
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| Posted: 16 Nov 2010 07:29 AM PST
This article originally appeared in The Daily Capitalist. Something is happening. I am not saying it is a trend, but the data are suggesting some improvement in the economy. This is the first time I have said this in two years. It may just be a temporary phenomenon since there are so many headwinds against a recovery. Perhaps it is just that things aren't getting worse. But the data are important and should not be ignored. Also these data don't change my mind about Q3 and Q4 being weak. But ... Before you dismiss me as a (complete) lunatic, here is what I am seeing. Wholesale inventories are growing faster than sales (1.18):
I interpret this as being a positive because wholesalers are stocking their shelves in response to improving retail sales and in anticipation of increased Christmas sales. According to a Wall Street Journal article:
Business inventories also increased, up 0.9% for September. Business sales were up 0.5%. Retail inventory build up (0.8%) was mainly related to autos (1.7%) and "other" retail inventories increased 0.4%. The business inventory sales ratio was 1.27, showing a steady increase since May 2010.
This also relates to inventory build-up for Holiday shopping. Retail sales have actually been "OK" lately. Monday's report from the Census Bureau showed retail sales jumped 1.2% in October:
The jump in auto sales was reflected in consumer credit numbers: it increased a net $2.1 billion in September which was solely due to auto sales (nonrevolving credit) being up by $10.4 billion. This is only the second increase in the past 20 months.
Gallup's spending survey numbers for October are overall low, but turning positive:
Gallup reports discretionary and marginal spending which are self-reported by consumers. While showing a slight increase, it is still down from 2009 which was a bleak year. But ... there are other important numbers to look at. While we can shrug off private job growth of 159,000 in October as being weak, it does reflect a positive trend. On the other hand, new jobless claims are stuck in the 440,000-490,000 range. Another thing to consider is that the dollar's devaluation will have a positive impact on multinationals and exporters. Ignoring for the moment to issues surrounding devaluation and QE, it will make U.S. exports more attractive in foreign markets. The other thing, and which I consider to be the most important statistic, is that money supply is growing:
From Michael Pollaro, The Contrarian Take According to Michael Pollaro, who generates this data:
I urge you to read Pollaro's complete article. Money supply growth is inflation. This should generate a temporary push to the economy. I anticipate we will see higher CPI numbers on Wednesday, reflecting price inflation as a result of monetary inflation. (I might even have to apologize to Mrs. Palin.) With all this new money sloshing around we are seeing "improved" loan activity, and as a result some reduction in excess bank reserves held at the Fed:
Bank credit and bank loans are improving, or, to put it more accurately, they have flattened out and are not still collapsing. Here are three charts reflecting banking trends:
The most recent survey of loan officers by the Fed bears this out:
The Fed survey ended with this sobering caution:
I have also been reporting that things are changing at the local and regional banks in that they are starting to aggressively clean their balance sheets by getting rid of foreclosed CRE and delinquent loans.
Local and regional banks are preparing for stiff competition from the large banks who now see opportunity in the small-to-middle-market sector. They need to be healthy in order to defend their customer base from aggressive poachers such as Citibank and BofA . What does all this mean? Things are improving. I am not calling this a "turn" or necessarily a "trend" in the economy because of all the negative factors still out there. But I do think things are improving. Perhaps things are just flattening and not getting worse. But much of the prospect of a turn around depends on the resolution of other important issues that are weighing on the economy:
The GDP numbers are already baked in, so I don't see any change in the Q4 report that would change my belief that it will be no better than Q3 GDP. We can probably expect the revised Q3 numbers to be a bit weaker than +2.0%. We need to note that if there is an improving trend, neither the Fed, nor the Obama Administration can claim they were the cause. All business cycles run their course. They all behave differently, largely depending on how much the government interferes with the recovery process. During the first two years of this crisis, the government has done everything they could to deter a recovery: bailing out failed institutions, propping up banks which should have been dissolved or have been forced to raise more capital and clean up their balance sheets (thanks for mark-to-make-believe, delay and pray, extend and pretend), spending vast sums on wasteful projects, incurring huge deficits which raise the specter of higher taxes, Cash for [Your industry here], HAMP, HARP, HAFA, and many more. While all this was going on individuals were deleveraging and increasing savings, banks were dealing with their problems albeit slowly, companies were becoming lean and mean, bankruptcies kept rising, foreclosures continued. These things are painful but without them we would not and will not recover. I believe this process is now speeding up which is positive for a recovery. But, tell me what the government will do next: they are Factor X. But for now, I can't ignore the data.
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| China cbank chief warns on fund flows, inflation Posted: 16 Nov 2010 07:10 AM PST 11/17/2010 (Daily Times) — China's central bank governor on Tuesday voiced concern at problems such as speculative fund inflows into the economy and rising inflation, leading the stock market to fall four percent. The comments added to a chorus of criticism by Chinese officials that monetary stimulus policies taken by the United States might lead to damaging fund flows and trigger inflation. … China and other emerging economies worry that much of the new US money will flood their financial markets, as traders seek higher non-dollar returns. Speculative "hot money" inflows are considered risky because they often flow out of an economy again on the first sign of weakness, exacerbating any problems. Excessive inflows of funds complicate Beijing's efforts to mop up the liquidity that is pushing up domestic asset prices and fuelling inflation. [source] RS View: Through the transitional period, instead of fighting fire with capital controls the flow of "hot money" should be shunted through the gold market — it's the only market with enough resiliency and sovereign-neutrality to accommodate the pressure without the conventional adverse economic effects as have been associated with such flow occurring through emerging markets.
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| Fixing Social Security… Some Other Day Posted: 16 Nov 2010 07:00 AM PST How exactly does one unwind a Ponzi Scheme? People like Bernie Madoff have done a fine job showing investors, and eventually the American public, how to build one up. Essentially, you use the contributions from incoming investors to pay "profits" out to departing investors. And you repeat this process for as long as the incoming checks are larger than the outgoing checks. When the inevitable tipping point finally arrives – and there isn't enough new money to pay off all the old money – you skip the border and leave your clients waiting for their next share of the profits…and waiting…and waiting. To describe American Social Security as such a scheme wouldn't be much of a stretch. For a system with so many complicated facets, advanced accounting and half-truths, there is one absolute fact: Social Security is not taking in enough money to write all the retirement checks it is obligated to write over the next couple of decades. So last week, President Obama's Bipartisan Deficit Commission set out to begin unwinding the scheme. Their proposal, like most things from Washington, was ambiguous at times and difficult to understand. Some suggestions included "creating a new bendpoint," "reducing replacement factors," and "phasing into a higher taxable maximum." But stripped down to the essentials, the plan has some merit. Here are the basics:
How does a government back its way out of an accidental Ponzi? Well, something like this proposal. In abstract terms, the Social Security system either has to pay out less, take in more, or both. That means lower benefit payments and/or higher taxes. And to the credit of the Commission, this proposal would work just fine. Everything about it is built to please both Democrats and Republicans – or rather, to displease both Democrats and Republicans. For starters, the commission is co-chaired by a member of each party, lest the whole thing be billed as a scheme to usurp power by the "liberal elite," the "radical right" or some other political affiliation that actually makes most people nauseous. Then there's the mechanics of the proposal. To appeal to the left, there are several provisions aimed at the underprivileged and disadvantaged. In essence, no one who REALLY needs a retirement insurance plan will be hung out to dry. Those dastardly "top earners," on the other hand, will have to pay more. And the left's precious "middle class America" will be just Goldilocks…tucked in that warm sweetspot of relatively few benefit cuts and minimal tax increases. For the right, the whole plan should appeal to the true blue Republicans (are there any?) that value fiscal responsibility above all. Allegedly, for every $1 of higher taxes in this plan, there's $3 in spending cuts. Of course, hiking taxes sounds like nails on a chalkboard to that crowd, especially during a recession. But the plan also proposes to cut individual tax rates to a maximum 23%, which would counteract the higher FICA taxes that would help pull Social Security out of the red. So, what we've got here is a fair, bipartisan proposal. It's flawed, of course, like any other first attempt. But is it that insufferable? Apparently so:
Dear reader, bad-mouthing the Commission's proposal on fixing Social Security might be the most bipartisan effort in the history of Washington DC. Alan Simpson, the Republican Co-Chair of the Commission, half joked on Thursday, "We're entering the witness protection program." Simpson and his Commission colleagues forgot they were in the business of politics. And politics, of course, is the business of being re-elected. It doesn't matter if none of the changes proposed would be felt for years, and that not a single current Social Security beneficiary would be affected. What does matter is that Nancy Pelosi, Jim DeMint, Bernie Sanders and all their brood can hear the 2012 campaign ads already… "Pelosi voted to CUT your Social Security benefits"… "Jim DeMint abandoned his Republican roots and voted to RAISE your Social Security taxes," and on and on. By even hinting at messing with Social Security, no matter Republican or Democrat, any politician is ruffling the feathers of the greatest golden goose of them all: seniors. Is there any demographic as coveted and important to election results as the grey hairs? No, there isn't. Seniors, much thanks to the entitlement programs their generation built, have plenty of time and wherewithal to shuffle over to the polls and vote down any candidate with the political fortitude to cut benefits…whether the threat to their actual retirement is real or just perceived. Thus, the Deficit Commission's proposal is dead on arrival, shot down by the most bipartisan hunting party assembled in years – all of whom are acting on behalf of a constituency that claims it cares for future generations, but has historically voted to save its own skin. Entitlement reform? It'll have to wait. "Democrat or Republican, Elephant or Donkey, nothing much ever seems to change," famous bond investor Bill Gross wrote in his monthly letter to investors earlier this month. "Each party has shown it can add hundreds of billions of dollars to the national debt with little to show for it, or move our military from one country to the next chasing phantoms instead of focusing on more serious problems back home. This isn't a choice between chocolate and vanilla folks, it's all rocky road: a few marshmallows to get you excited before the election, but with a lot of nuts to ruin the aftermath." With that in mind, nuts to you Republicrats, and you too, Bernie Sanders… and to anyone else who wants to reduce the deficit without making a single sacrifice. Interestingly, one of the only Washingtonians making sense last week was President Obama. "If we are concerned about debt and deficits," he said, "then we're going to have to take actions that are difficult and we're going to have to tell the truth to the American people.'' Well, you know the truth. Ready to take action? Good luck, Ian Mathias Fixing Social Security… Some Other Day originally appeared in the Daily Reckoning. The Daily Reckoning, offers a uniquely refreshing, perspective on the global economy, investing, gold, stocks and today's markets. Its been called "the most entertaining read of the day."
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| This past week in gold - Nov 15, 2010 Posted: 16 Nov 2010 06:56 AM PST Jack Chan JACK CHAN's Simply Profits. Precision sector timing for gold, energy, and technology. Posted Nov 15, 2010 GLD – on buy signal. *** SLV – on buy signal. *** GDX – on buy signal. *** XGD.TO – on buy signal. Summary Long term – on major buy signal. Short term – on buy signals. We continue to hold our core positions, and promptly initiated a hedge upon the high volume key reversal this week, to lock in profits and to limit any further downside risk. ### Disclosure We do not offer predictions or forecasts for the markets. What you see here is our simple trading model which provides us the signals and set ups to be either long, short, or in cash at any given time. Entry points and stops are provided in real time to subscribers, therefore, this update may not reflect our...
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| Posted: 16 Nov 2010 06:50 AM PST MK: Last summer I met up with Mike Maloney of goldsilver.com who was on a world tour with his crew filming this documentary. This is part 1 of that interview – we touch on the huge JP Morgan short position in the Silver market and how that is probably going to explode in their face. [...]
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| Posted: 16 Nov 2010 06:46 AM PST by Joe Weisenthal It looks like they just upped them for gold… As per the normal review of market volatility to ensure adequate collateral coverage, the Chicago Mercantile The rates will be effectiveafter the close of business on Tuesday, November 16, 2010. COMEX 100 GOLD FUTURES (GC) Hedge/Member [source]
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| Watch The European Union Press Conference Over Ireland (And Other Things) Live Posted: 16 Nov 2010 06:37 AM PST
This is so deja vu of the EU press conference when the Greek bailout was announced on Sunday, May 9. Although this time there is no silver lining, as no deal has been reached. Anyway, here is the link for the EU press conference which so far is agenda-less so anything could be announced... or nothing.
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| China eyes price controls to fight inflation Posted: 16 Nov 2010 06:36 AM PST All they really need are a U.S.-style Consumer Price Index and Bureau of Labor Statistics. * * * By Geoff Dyer http://www.ft.com/cms/s/0/a49d39f4-f17b-11df-8609-00144feab49a.html#axzz... China is considering a package of price controls and other measures to contain inflation which rose sharply last month and has become the principal risk to the economy. The National Development and Reform Commission, China's main economic planning body, is putting together a "one-two punch" of policies to limit food inflation, state media reported on Tuesday, in a sign that debate is breaking out over how to tackle rising prices. Several major cities in China have announced plans to try to cap food prices, while two officials in Beijing also confirmed this week that the government was looking again at price controls. ... Dispatch continues below ... ADVERTISEMENT Prophecy Receives Permit To Mine at Ulaan Ovoo in Mongolia VANCOUVER, British Columbia -- Prophecy Resource Corp. (TSX-V:PCY, OTCQX: PRPCF, Frankfurt: 1P2) announces that on November 9, 2010, it received the final permit to commence mining operations at its Ulaan Ovoo coal project in Mongolia. Prophecy is one of few international mining companies to achieve such a milestone. The mine is production-ready, with a mine opening ceremony scheduled for November 20. Prophecy CEO John Lee said: "I thank the government of Mongolia for the expeditious way this permit was issued. The opening of Ulaan Ovoo is a testament to the industrious and skilled workforce in Mongolia. Prophecy directly and indirectly (through Leighton Asia) employs more than 65 competent Mongolian nationals and four expatriots. The company also reaffirms its commitment to deliver coal to the local Edernet and Darkhan power plants in Mongolia." The Ulaan Ovoo open pit mine is 10 kilometers from the Russian border and within 120km of the Nauski TransSiberian railway station, enabling transportation of coal to Russia and its eastern seaports. Thermal coal prices are trading at two-year highs at Russian seaports due to strong demand from Asian economies. For the complete press release, please visit: http://prophecyresource.com/news_2010_nov11.php Consumer price inflation rose to 4.4 per cent in October, well above the government's 3 per cent target, after food prices increased at an annualised rate of 10.1 per cent over the month. The surge in inflation has spooked domestic financial markets, with the Shanghai Composite index falling 5 per cent on Friday and a further 4 per cent on Tuesday on rumours about imminent interest rate rises and reports about price controls. High inflation is potentially very damaging in China because as well as being a possible spark for political unrest, it could also encourage speculative investments by Chinese depositors who are currently receiving negative real returns on savings in the banking system. In the face of mounting inflationary pressures, Beijing has already increased interest rates once and raised reserve requirements for banks on several occasions. Fuzhou city on the southeast coast announced price caps last week on four types of vegetables, while Kunming in the southwest has also announced price controls on vegetables. The average price of 18 staple vegetables was 62.4 per cent higher in the first 10 days of November than over the same period the year before, according to a report by the Xinhua news agency on Monday. The average price of the group of vegetables, which includes cabbage, cucumbers and potatoes, increased to Rmb3.9 ($0.59) per kilogramme. Garlic, which has been the subject of some speculative buying according to analysts, was up 95.8 per cent over the year before, while the price of ginger was 89.5 per cent higher, the report said, citing the Ministry of Commerce. According to a report in the China Securities Journal, the measures being examined, in addition to price controls, include subsidies for consumers, a crackdown on hoarding food and other commodities and a policy of making city mayors responsible for the price of a set basket of goods, although it gave no details about how such a system would work. Andy Rothman, an economist at CLSA in Shanghai, said that when the authorities announced a package of price controls in 2008 during a previous spike in inflation, they actually intervened very little in product markets. "It was a way of applying some psychological pressure on companies," he said. "The primary objective of the government's recent measures has been to make a political point that the Communist party is doing everything it can to avoid food prices going up too." Yao Jian, a spokesman for the Chinese Commerce ministry, said the government was releasing stockpiled supplies of pork and sugar to ease price increases, while it would also take steps to increase vegetable production. Chinese officials have warned that loose monetary policy in the US could cause inflation and bubbles in developing economies. However, many analysts in China argue that domestic monetary policy is at the root of current inflation. UN officials, who this summer played down the risk of a repetition of the 2007-08 food crisis, are increasingly concerned that prices could rise sharply next year. The UN's Food and Agriculture Organisation said this month that its food index rose in October to levels last seen during the peak of the food crisis in June 2008. The 2007-08 crisis and the current price spike share worrying similarities, according to UN officials and agricultural economists. The major producing nations, such as Russia or Ukraine, imposed export restrictions on both occasions, while importers, such as China, responded with matching retail price controls. China doubled the amount of new bank loans in 2009, while Ba Shusong, an economist at a think-tank connected to the State Council, said on Tuesday that new lending this year was likely to exceed the government's Rmb7,500 billion target. Rising wages could also fuel inflation, economists said. Fan Gang, a former adviser to the central bank, said China should allow its currency to appreciate more rapidly in order to contain rising prices of soyabean oil and animal feed. A stronger currency "may be used as a policy to deal with inflation and that would not only be good for the control of inflation but also would be beneficial for the overall balance of the domestic economy and external economy," he was quoted by Bloomberg as saying at a conference. Support GATA by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon: * * * Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT Sona Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit, Company Press Release, October 27, 2010 VANCOUVER, British Columbia -- Sona Resources Corp. reports on five drillling holes in the third round of assay results from the recently completed drill program at its 100 percent-owned Elizabeth Gold Deposit Property in the Lillooet Mining District of southern British Columbia. Highlights from the diamond drilling include: -- Hole E10-66 intersected 17.4g gold/ton over 1.54 metres. -- Hole E10-67 intersected 96.4g gold/ton over 2.5 metres, including one assay interval of 383g of gold/ton over 0.5 metres. -- Hole E10-69 intersected 85.4g gold/ton over 4.03 metres, including one assay interval of 230g gold/ton over 1 metre. Four drill holes, E10-66 to E10-69, targeted the southwestern end of the Southwest Vein, and three of the holes have expanded the mineralized zone in that direction. The Southwest Vein gold mineralization has now been intersected over a strike length of 325 metres, with the deepest hole drilled less than 200 metres from surface. "The assay results from the Southwest Zone quartz vein continue to be extremely positive," says John P. Thompson, Sona's president and CEO. "We are expanding the Southwest Vein, and this high-grade gold mineralization remains wide open down dip and along strike to the southwest." For the company's full press release, please visit: http://sonaresources.com/_resources/news/SONA_NR19_2010.pdf
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Asian markets started a global sell-off in stocks after South Korea's central bank raised interest rates to curb inflation. Shares also fell in Shanghai and Hong Kong as speculation spread that China will take more steps to rein in its red-hot economy, which would dampen global demand for industrial goods. The Dow fell 1.8% in midday trading, the S&P 500 index fell 1.7% and the the Nasdaq composite index fell 1.8%. Commodities prices also fell broadly on worries that China's demand for them could wane…
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